Big-Tech Slump Drags U.S. Stocks to Two-Week Low: Markets Wrap

(Bloomberg) — U.S. stocks bounced back from a sharp selloff but still closed at a two-week low as megacap tech shares sold off.

Loading...

Load Error

Losses for Amazon.com, Microsoft Corp. and Facebook Inc. pushed the tech-heavy Nasdaq 100 down more than 5% at one point, though it pared those declines to just over 1% as the day wore on and investors spotted bargains. Gains in financial shares limited losses in the S&P 500 Index, which ended the week down 2.3% at the lowest level since Aug. 21.

Treasury yields jumped while the dollar slipped. Oil fell below $40 a barrel to reach the lowest since late June.

The worst of Friday’s stock selloff appeared to stem from concern that the recent run-up in tech shares wasn’t tied to broad investor sentiment, but instead was driven by outsize options trades from one firm. The Financial Times reported that SoftBank bought billions of dollars in tech derivatives before the rout that began Thursday.



a screenshot of a cell phone screen with text: Nasdaq 100 falls for a second day to a two-week low


© Bloomberg
Nasdaq 100 falls for a second day to a two-week low

Traders are seeking to find an appropriate valuation for tech stocks and gauge the health of the U.S. economy as the coronavirus pandemic rages on after having killed more than 180,000 Americans. While the industry is generating blockbuster profits during the stay-at-home lockdowns, there’s also evidence that high-flying names have become overheated.

“It’s those crowded names that were over-owned that are being sold again,” said Dan Russo, chief market strategist at Chaikin Analytics. “It’s the lofty valuations, the stocks just were stretched.”

Elsewhere, emerging-market stocks fell for a third day. European shares slumped. Asian shares dropped, with Australia’s benchmark recording the biggest decline since May.

Here are the latest market moves:

Stocks

The S&P 500 Index fell 0.8% at 4 p.m. New York time.The Nasdaq 100 Index fell 1.3%.The Stoxx Europe 600 Index fell 1.1%.The MSCI Asia Pacific Index dropped 1.2%.

Currencies

The Bloomberg Dollar Spot Index fell 0.1%.The euro was little changed at $1.1847.The Japanese yen was little changed at 106.21 per dollar.

Bonds

The yield on 10-year Treasuries increased eight basis points to 0.71%.Germany’s 10-year yield rose two basis points to -0.48%.Britain’s 10-year yield climbed three basis points to 0.26%.

Commodities

West Texas Intermediate crude fell 4.5% to $39.51 a barrel.Gold rose 0.2% to $1,935.23 an ounce.Silver rose 1.3% to $26.93 per ounce.

For more articles like this, please visit us at bloomberg.com

©2020 Bloomberg L.P.

Continue Reading

Source Article

Next Post

Cane Bay Partners Contributions to UVI Support New Data Science Minor Program

Classified in: Science and technology CHRISTIANSTED, U.S. Virgin Islands, Sept. 5, 2020 /PRNewswire-PRWeb/ — The University of the Virgin Islands’ School of Science and Mathematics will now be offering a minor in data science, supported, in part, by donations provided by Cane Bay Partners VI LLLP. Over the last 11 years, […]